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CEO Message

CEO Message

A Transformative Strategy for a Changing World

CEO Message

A Transformative Strategy for a Changing World

From delivering packages between cities to transporting freight across borders, UPS is a critical player in facilitating global trade and supporting the world economy. With three percent of global gross domestic product (GDP) flowing through our network every day, we are a key part of our customers’ supply chains, helping businesses reach new markets, and enabling economic development.

But the world is changing fast, and we do not take this leadership position for granted. We’ve earned our leadership role as a result of more than 112 years of embracing innovation, being first-movers in nascent marketplaces, and making our competitors chase and copy our bold moves. Simply put, we’ve understood that there’s a reason our windshields are bigger than our rearview mirrors, and we’ve always embraced the future.

Today, we’re managing the impact of new competitors, as well as megatrends such as e-commerce, urbanization, technological innovation, and climate change that are fundamentally shifting markets and everyday life. Our biggest threat? A status quo mindset that inhibits new thinking and industry-leading, category-creating innovation.

To continue advancing our industry leadership, we embarked on a journey more than a year ago to transform nearly every aspect of our business, from leadership and culture, to operations and our go-to-market strategy. By embracing megatrends shaping the future, we are not only improving our operational efficiency, but also creating more sustainable practices that will strengthen our business in a changing world.

Modernizing our network

A critical outcome of our transformation is to make UPS the fastest, most technology-enabled, and responsive company in our industry. We are expanding the use of route optimization and navigation software that reduces fuel and emissions across our network, from package pick-up to delivery. In London, we’re testing smart-grid technology that can charge an entire fleet of electric vehicles simultaneously – a groundbreaking move. Since 2009, we have invested more than $1 billion in alternative fuel and advanced technology vehicles and infrastructure globally, with more than 10,000 of these vehicles in our fleet today. We are also collaborating with cities to create innovative last-mile delivery solutions that reduce congestion and pollution in dense urban centers, with more than 30 projects currently underway around the world.

 

Enabling customer growth

UPS’s strategic growth imperatives include focused investments in areas that will create a more inclusive global economy. For example, we are enhancing services for small and medium-sized businesses, which comprise approximately 50 percent of U.S. GDP. A recent example is Ware2Go, a new UPS business that matches available warehouse space and fulfillment services across the U.S. with merchants who need the space. By reducing the complexity and cost of logistics for smaller businesses, we are helping this important segment of our economy prosper.

We also continue to expand in international high-growth markets, where we can efficiently connect domestic and export customers through our network. Roughly 95 percent of the world’s population lives outside the U.S. – many in emerging markets that are the growth engines for the global economy. UPS is developing tools and partnerships to connect with small business owners in these markets – particularly women –through capacity-building programs that empower them to participate in global trade.

Strategic Imperatives

Small-and Medium-Sized Businesses
Small-and Medium-Sized Businesses
Global B2B and <br>B2C E-commerce
Global B2B and
B2C E-commerce
Healthcare <br>and Life Sciences
Healthcare
and Life Sciences
International High-Growth Markets
International High-Growth Markets
Bike shop

Empowering our people

This transformation wouldn’t be possible without a strong team. That’s why we’re fostering a culture focused on innovation and agility, encouraging UPSers at all levels to think like entrepreneurs and act in bold new ways.

In 2018, we introduced a new internal competition in which dozens of startup teams pitched their ideas to UPS leadership. Four teams received funding in 2018 to operationalize new solutions and services that will help customers streamline returns, reduce waste, and conduct transactions more safely. We also hosted hack-a-thons in collaboration with community partners, during which UPSers contributed their technical expertise to bring new thinking to big challenges.

I know that bold thinking exists within every UPSer around the world, and we are creating an environment to unleash it.

Creating our tomorrow

We are undertaking this transformation from a position of strength. A mindset of continuous transformation, combined with the courage to innovate fearlessly, will ensure our continued strong growth into the future.

It’s been said that the best way to predict the future is to create it. At UPS, we’re choosing to create a future that is connected, sustainable, and inclusive. It’s not always the easy path. But exponential change brings exponential opportunity if we have the resolve to do what it takes.

David Abney's signature

David Abney,
Chairman and CEO
UPS

Additional Transformative Vision Stories:


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UPS’s global logistics network carries 3 percent of the world’s gross domestic product on a daily basis. Here are the principal dynamics shaping how that network evolves in the future.

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